Understanding The Greeks
May 26, 2022
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Understanding The Greeks

Introduction An option contract’s Greeks refers to the specific variables that, when combined, provide you with the value of expected changes in the option, which come because of changes in the underlying stock and the contract itself. In other words, the Greeks provide an insight into the possible future price movement of an...

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1 month ago
The Wheel Strategy
May 09, 2022
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The Wheel Strategy

As an equity investor, we are always seeking investment opportunities to maximize capital appreciation and income. Finding a balance between the two can be challenging and many times have significant tradeoffs. However, you can potentially add income to any equity position with options using two strategies to add an income...

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2 months ago
A Counterintuitive Approach to Expiration Dates & Strike Prices
March 07, 2022
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A Counterintuitive Approach to Expiration Dates & Strike Prices

The process to select expiration dates and strike prices for an options strategy is fairly simple, but sometimes counterintuitive. Selecting the optimal expiration dates and strike prices depends on a few factors, however there is an overarching method to selecting them for any strategy. In this post we will analyze expiration...

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4 months ago
An Options Strategist’s Guide to Buying Portfolio Protection
March 02, 2022
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An Options Strategist’s Guide to Buying Portfolio Protection

As the disconnect continues to widen between fundamentals, economics and where equity market valuations, many investors have raised the question, when is it time to hedge the growing downside risks? To help investors answer this question, we explore the mechanics and best practices for seeking downside protection for a...

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4 months ago
Collar Strategy
December 06, 2021
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Collar Strategy

The Collar strategy is a strategy that allows investors to protect from large downside losses on a stock. This strategy requires the investor to have a minimum of 100 shares of the stock. The Collar strategy can also be considered as a combination of two strategies – writing a Covered Call and buying a Put option. Collars...

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7 months ago
Multi-Leg Options Can Reduce Risk & Improve Executions
November 03, 2021
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Multi-Leg Options Can Reduce Risk & Improve Executions

Trading options involves selecting from a world of options, which may seem overwhelming at first. With 4 core strategies, buying calls, selling calls, buying puts and selling puts, it’s already a step up in complexity from stock investing and trading. Despite the flexibility that these strategies provide, each has their...

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8 months ago
Covered Combination
September 28, 2021
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Covered Combination

Introduction A covered combination is an often-overlooked options strategy by many investors who may utilize each half of the strategy separately, but never considered combining them. This is a strategy where an investor owns 100 shares of a stock and sells a covered call and a cash secured put at the same time. The motivation...

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9 months ago
Growing an Options Account Sustainably
September 07, 2021
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Growing an Options Account Sustainably

Investors that are starting to trade options tend to have smaller trading accounts. In this post we will discuss the challenges with growing a smaller options account and the strategies to do so sustainably. While smaller accounts are more challenging to grow, there are best practices and strategies that investors can use for...

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10 months ago
High Yield Income Opportunities using OptionsPlay
August 16, 2021
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High Yield Income Opportunities using OptionsPlay

Option income strategies can be used to increase the yield of an equity portfolio by generating an income stream and by purchasing stocks at a potential discount. This post will cover which options strategies to use based on your primary goal, how to implement these strategies and how you can instantly scan the entire market...

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11 months ago
Collect Maximum Income Selling Straddles and Strangles
July 08, 2021
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Collect Maximum Income Selling Straddles and Strangles

Straddles and strangles are considered advanced options strategies that are suitable for more experienced traders with a high tolerance for risk. However, they also generate maximum income for investors with larger accounts and longer investment horizons. Both of these strategies require a sizable margin account and clearance...

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12 months ago
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